The total value of new mortgage lending in April this year reached £12.2 billion, the highest monthly amount since August 2008.
However, data from the British Bankers’ Association (BBA) also found that new mortgage approvals fell considerably in the third month of the year to 42,173, down from 45,045 in February.
The level of approvals had peaked in January at 48,000 for the month but fell for the subsequent three months.
Jonathan Harris, director of mortgage broker Anderson Harris, said: ‘With the BBA revealing that April saw the highest monthly total of new mortgages since August 2008, confidence continues in the housing market, with lenders also willing to lend.
‘However, the actual number of mortgage approvals for house purchase was 42,173, down from 45,045 the previous month and below the six-month average of 45,720. This is not a market running away with itself. The introduction of the Mortgage Market Review may be having an effect: while it’s still early days, with many lenders introducing the new rules weeks ahead of the official launch, its’ impact may already be starting to be felt.
‘Talk of interest rates rising continues, with Charlie Bean, the retiring deputy governor of the Bank of England saying at the weekend that they could rise to 3 per cent in the next three to five years. While there is no need for borrowers to panic, it is important to consider whether you can afford any mortgage you take on and to opt for a fixed rate if you are concerned about budgeting.’
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